Political ad spend driving market growth

Political ad spend driving market growth

Increased political spending has been highlighted as one of the primary drivers of growth in the Australian ad market last month.

The ad market spiked by 1.8% last month, reversing a decline the previous month, according to the latest SMI data.

Leading global financial analysts Credit Suisse believe the upturn in fortunes for the ad market is down to a surge in spending by the political parties ahead of the Federal Election.

Credit Suisse reported that political advertising more than doubled in June. “Increased political spending the driver of growth,” it stated in it's report released this morning.

However, it did warn that election-related spending was crowding out other categories, with ex-political advertising down 1.5% for the month and most other major categories – with the exception of travel (up 19%) – flat or down in June.

The SMI figures also showed that broadcast TV returned to growth, with metro FTA advertising up 5.7%, representing a big swing from a 4.7 % decline in May.  

"In addition to the uplift in political advertising, FTA benefited from a strong slate of sport and reality programming in June,” said Credit Suisse.

Nine Network was the was the big winner, securing  38.44% share of ad revenue and closing the gap on the market leader, Seven (39.35%).

Peter Wiltshire, Nine's group sales & marketing director, tweeted: "It’s all about gaps. 1.49mill for #GapYearAsia & SMI shows gap is closing on Seven. More hard work (& laughs) to close gap completely".

Meanwhile, print failed to benefit from election-related spending, with newspaper ad spend down 22% in June, an 11th straight month of double-digit declines. Magazine ad spend fell 25% last month.

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